"They're Smart:" FG Speaks on New Tactics Illegal Loan App Operators Use to Lure Nigerians

• The federal government has spoken on the reason Illegal loan apps would continue to run in Nigeria
• The FCCPC CEO said apps use DMLs that operate through PSSPs illegally, making it difficult to stop their operations
• His comment followed allegations of corruption and exploitation of companies by the commission

The federal government of Nigeria has opened up on the reason it is unable to eliminate the operations of illegal loan apps despite its efforts.

Chief executive officer of the Federal Competition and Consumer Protection Commission (FCCPC), Babatunde Irukera, disclosed this while reacting to the allegation of corruption against the commission on his X page.

Apps cannot be stopped

According to the CEO, some of the loan platforms use Data Manipulation Language, (DML) apps that operate illegally by wallets through PSSPs, hence it is difficult to stop them.

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He said:

“No way to stop DMLs operating actually. They spring up daily in different places on the internet using APKs & when bank accounts are frozen, they operate by wallets through PSSPs. We are chasing every day, but won’t ever stop them all."

He added that the issue has nothing to do with bribes as claimed by those who feel that the FCCPC officials are inefficient in their duties but exploit companies.

Irukera said this in response to an X user who accused the commission of exploiting companies.

According to the user, @iefsafrica, desk officers intentionally delay license issuance due to bribery.

The user, who posited that Nigeria cannot be great due to this level of corruption, said:

“Nigeria cannot be great when this level of corruption is present in @fccpcnigeria. Their staff are involved in exploiting companies, and DMLs desk officers intentionally delay license issuance, due to bribery.”

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Meanwhile, earlier Legit.ng reported that the FCCPC gave loan apps five days to prove that they operate within the set guidelines governing the industry or be deleted and sanctioned.

FCCPC also asked Google to remove the 18 loan apps from Playstore for violation of its guidelines.

Full List: FG announces 50 new loan apps, monitors 84 others as Google removes 45 from play store

Legit.ng also reported that the FCCPC announced that the total number of approved loan apps in Nigeria stood at 211 as of the end of October 2023.

The commission disclosed this in a statement signed by Irukera.

According to details from the statement, the approved loan apps comprise 172 with full approval and 39 others with conditional approval.

Source: Legit.ng